Tag Archives: ITO

Enhanced Compensation and Section 28 Interest on Compulsorily Acquired Rural Agricultural Land Held Non-Taxable

By | August 14, 2026
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Enhanced Compensation and Section 28 Interest on Compulsorily Acquired Rural Agricultural Land Held Non-Taxable Issue Whether enhanced compensation received on the compulsory acquisition of rural agricultural land situated beyond eight kilometers from municipal limits is taxable as capital gains under Section 45(5) read with Section 2(14)(iii). Whether interest awarded under Section 28 of the Land… Read More »

Reassessment notice issued beyond six years without w.e.f. 01.04.2023 Finance Act provisos is time-barred

By | August 10, 2026
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Reassessment notice issued beyond six years without w.e.f. 01.04.2023 Finance Act provisos is time-barred Reassessment notice issued beyond six years without w.e.f. 01.04.2023 Finance Act provisos is time-barred Issue Whether a reassessment notice issued under Section 148 on 07.04.2022 for Assessment Year 2015–16 is barred by limitation when the provisos to Section 149(1) inserted by… Read More »

In the absence of new material facts, the principle of consistency applies and school’s surplus cannot be assessed separately when integrated into the parent board’s accounts.

By | August 1, 2026
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In the absence of new material facts, the principle of consistency applies and school’s surplus cannot be assessed separately when integrated into the parent board’s accounts. Issue Whether the surplus/income of a school can be separately assessed in its hands under Section 144 of the Income-tax Act, 1961, when it claims to be part of… Read More »

Interest under Section 28 of Land Acquisition Act Forms Part of Compensation, Not Taxable under Income from Other Sources

By | July 27, 2026
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Interest under Section 28 of Land Acquisition Act Forms Part of Compensation, Not Taxable under Income from Other Sources Issue Whether interest received on enhanced compensation under Section 28 of the Land Acquisition Act, 1894 is taxable as ‘Income from Other Sources’ under Section 56(2)(viii) or forms part of the compensation itself. Facts Compulsory Acquisition:… Read More »

Inadvertent Claim Of Full Pre-Incorporation Expenses Disclosed Bona Fide Does Not Attract Section 270A Penalty

By | July 25, 2026
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Inadvertent Claim Of Full Pre-Incorporation Expenses Disclosed Bona Fide Does Not Attract Section 270A Penalty Issue Levy of Penalty under Section 270A for Inadvertent Expense Claim: Whether penalty under Section 270A for under-reporting of income can be levied when an assessee inadvertently claims 100% of pre-incorporation expenses instead of 1/5th under Section 35D, but offers… Read More »

Ex-Gratia Amount Received On Voluntary Retirement Under Employer Scheme Is Non-Taxable Capital Receipt

By | July 22, 2026
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Ex-Gratia Amount Received On Voluntary Retirement Under Employer Scheme Is Non-Taxable Capital Receipt Issue Whether ex-gratia/settlement amounts received by an employee upon opting for voluntary retirement under an employer’s financial scheme constitute a non-taxable capital receipt or taxable income under Section 56(2)(xi) / Section 17 of the Income-tax Act, 1961. Facts Background & Receipt: The… Read More »

No section 68 addition is sustainable for an alleged cash loan without any credit entry in the assessee’s books.

By | July 9, 2026
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No section 68 addition is sustainable for an alleged cash loan without any credit entry in the assessee’s books. Issue Whether an addition under section 68 of the Income-tax Act, 1961 can be legally sustained when there is no credit entry in the assessee’s books of account, and the addition is based entirely on a… Read More »

An asset transferred via a slump sale cannot be isolated and taxed again upon registration.

By | July 9, 2026
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An asset transferred via a slump sale cannot be isolated and taxed again upon registration. Issue Whether the revenue department can separately tax the subsequent registration of a conveyance deed for an immovable property under Section 50C in a later assessment year, when that specific asset was already transferred and taxed as part of a… Read More »

Cash deposits are fully explained by a co-owner’s accepted advance and verified bank withdrawals

By | July 4, 2026
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Cash deposits are fully explained by a co-owner’s accepted advance and verified bank withdrawals Issue Whether a Section 69A addition for unexplained cash deposits totaling ₹48 lakhs can be sustained when a co-owner’s tax proceedings have already validated the primary source of the funds and the remaining deposits are backed by documented bank withdrawals. Facts… Read More »

Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution

By | June 27, 2026
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Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution Section 80-IB(10) Housing Deduction Cannot Be Restricted By Arbitrary and Erroneous Land Cost Substitution Issue Whether the Commissioner (Appeals) was legally justified in rejecting a rectification application under Section 154 when the original order restricted a housing project’s deduction under Section… Read More »